Services and consulting revenue was down eight per cent, compared to 11 per cent in the previous three quarters. Outsourcing services saw sales grow 11 per cent.

Revenue in the first quarter of 2010 was £939m. It said it expects operating cashflow to show the "normal seasonal pattern".

The services firm expects a continued fall through the first half, with sales for the full year at a similar level to 2009.

Logica CEO Andy Green said there were positive trends in the first three months of the year, with strong growth in France and the UK balancing out a poorer performance in Benelux and to a lesser extent Sweden.

The company had 38,689 employees at the end of March 2010 compared to 38,780 in December 2009. Near shore and offshore staff grew by 100 to 5,2000 - Logica expects to add ten per cent to this figure in the second quarter.